Question: Problem 8 . 0 4 ( Expected and Required Rates of Return ) Assume that the risk - free rate is 3 . 5 %

Problem 8.04(Expected and Required Rates of Return)
Assume that the risk-free rate is 3.5% and the market risk premium is 6%. What is the required return for the overall stock market? Round your answer to one decimal place.
% What is the required rate of return on a stock with a beta of 1.3? Round your answer to one decimal place.
%
Problem 8.04(Expected and Required Rates of Return) Assume that the risk-free

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